Formerly Head of Partner Sales at Google Japan Enterprise, and Head of Apple Pay Merchant Business at Apple Japan Board of Directors Board Member Naoki Aoyagi Formerly CFO of Gree, Inc. CTO/Board Member Keisuke Sogawa Formerly CTO of WebPay, Inc. Board Member Kazushi Osari Formerly worked at Bain & Company and as part of the the President’s Office at Sega Corporation CFO/Board Member Sayaka Eda Formerly Managing Director at Goldman Sachs Japan Co, Ltd. CRCO/Board Member Akira Inoue Formerly Senior Managing Director and Head of Internal Control at SMBC Nikko Securities Inc.
at Merp a y COO Takeo Iyo Formerly Head of Product Division at Merc a ri VP of Engineering Hideo Kimura Formerly Platform Department Executive Officer in the Japan region game business headquarters of DeNA Co, Ltd. as well as System Division Executive Officer Board Member Kyosuke Nobukawa Formerly worked at Sumitomo Mitsui Card Co., Ltd. Board of Directors CTO Takashi Nozawa Formerly Technical Director at Origami Inc.
a mobile payment service brought to you by the creators of Merc a ri, Japan's largest C2C marketplace app. It is operated by Merp a y, Inc., under the Merc a ri Group. With Merp a y, users can make payments on Merc a ri and at 2.64 million stores nationwide, by using the money earned from selling items they no longer need on Merc a ri, charging money from their bank accounts, or using Merp a y Smart Payments.
ɹDefers payment to the following month • Fixed-amount payment: ɹPay in installments over several months • A small-sum loan serviceʮMerp a y Smart Moneyʯ • Started services allowing users to ɹuse their Merp a y balance for ɹasset management and more Payment Credit Growing Wallet Lump-Sum Payment Fixed-Amount Payment Asset Management Pay for everyday purchases all at once the following month Treat yourself now and pay over several months at a fixed amount of your choice •Providing a virtual card in addition to iD payment and code payment iD Code Payment Hold your phone over a reader Scan a code Virtual Card Input a number 1. Launched March 3, 2021 Merp a y Smart Moneyʢ1ʣ Merc a ri users can apply for within the Merc a ri app and that utilizes Merc a ri usage history to determine a user’s interest rate and borrowing limit
Merp a y to Merc a ri’s item lifecycle creates a circular relationship between users’ items, money, and credit, facilitating the growth of “circular finance” that grants users greater freedom and flexibility. It provides users with a valuable, uniquely Merc a ri experience.
iD Payments/ QR Code Payments Available at 2.64 million iD and Merp a y merchants nationwide, including convenience stores, restaurants, drug stores, and fast food *As of Mar 31, 2022 (merchants with both iD/QR counted once only) 2020.7 Merp a y Smart Payments Allows users to defer payment for items based on past usage of Merc a ri and Merp a y Online Payments Enables use of Merp a y for not only offline purchases, but online as well 2020.9 Send/receive Enables users to send their Merp a y balance/points to family and friends No-contact service 2019.4-5 Growing Wallet Enables users to utilize their Merp a y balance on the peer-to-peer investment service Funds 2020.11 2021.3 Shared d Payment/ Merp a y QR code Enables use of single QR code for both d Payment and Merp a y Virtual card Enables users to easily issue a card number which can be used to pay using Merp a y balance at many online stores Identity verification using Japan’s Individual Number Card (JPKI) Support for identity verification using Japan’s public Individual Number Card identification service (JPKI) Merp a y Smart Payments (fixed-amount) Allows for “fixed-amount payments,” whereby users pay in installments from the following month onwards Merc a ri Donation Enables donation of Merp a y balance, charged from Merc a ri sales balance or bank account, etc., to local governments and other organizations of the user’s choice Merp a y Smart Money 2021.8 A small-sum loan service that Merc a ri users can apply for within the Merc a ri app and that utilizes Merc a ri usage history to determine a user’s interest rate and borrowing limit
12.92 million users1, with an 80% retention rate for first-time users2. 1. Total number of unique users who are registered for Merp a y Electronic Money, or used Merp a y Code Payments, Online Payments, Merp a y Smart Payments, etc. as of Mar 31, 2022. 2. The ratio of unique users who made a payment using Merp a y for the first time at an offline merchant in May 2019, and made a payment using Merp a y again the following month. This does not include users who made their first payment entirely using points awarded for free. Over 10 million Merp a y users Retention Rate of First-time Users
not available. Merp a y Merchants Both iD Payments and Merp a y Code Payments are available at 2.64 million locations nationwide (as of Mar 31, 2022, including locations scheduled to implement Merp a y). and more...
to Small- to Medium-Sized Merchants) In January 2020, Origami Inc. joined Merc a ri Group through Merp a y’s acquisition of Origami shares and Merc a ri/Merp a y concluded an agreement for a business alliance with Shinkin Central Bank. From the beginning of September 2020, Merp a y launched use of a shared QR code between Merp a y and Docomo’s d Payment service. We have promoted the introduction of Merp a y to small- to medium-sized local businesses and conducted Merc a ri Workshop sessions as well, aiming to create the kind of “highly sustainable, circular economy” where users can take the money obtained from selling unneeded items on Merc a ri and channel it into these communities with Merp a y.
2.6% payment service fee to Merp a y usage from July 1, 2021. 1. Merp a y: Applied a 2.6% merchant service fee to Merp a y usage from July 1, 2021. d Payment: Until September 30, 2021 (for merchants who apply between April 1 and September 30, 2021) *The 2.6% merchant service fee will apply to d Payment usage from April 1, 2021, onward for merchants who signed up for the service before March 31, 2021. 2. Exceptions may apply. No start-up or fixed fees All you need is a smartphone. No monthly fees. All you pay is service fees on each payment. A service which lightens the burden on merchants.2 Stop worrying about service fees yen Essentially free1 about docomo’s d Payment service.
merchants in order to strengthen Merp a y/Merc a ri synergy. 1. This initiative represents proof-of-concept testing at select locations. Merp a y Code Payments Sales of Merc a ri packaging Set up a Merc a ri Post station Collaboration with major dry cleaning franchise White Express
money for sale/charge balance Receive item We are building a sustainable cycle where users can use Merc a ri to sell unneeded items around the house for money, then use Merp a y to spend that money on purchases from stores (primary distributors). Sell unneeded items on Merc a ri Purchase new items using Merc a ri sales balance, etc.
a y identity verification (eKYC) Identity verification via ID + selfie KYC using Individual Number Card (JPKI) Fraud coverage Register for Merc a ri Connect to financial institutions (banks) Anti-fraud countermeasures employed in process from account creation to bank account connection/service use (1) Two-step authentication (SMS) (2) Identity verified against name on bank account (3) Anti-fraud monitoring when charging from bank/ using Merp a y (4) Total coverage in the event of an incident Transfer funds from bank to Merp a y Use Merc a ri/Merp a y Ensuring a safe and secure environment has remained a priority for Merp a y. We have implemented identity verification and anti-fraud countermeasures, as well as strengthened identity verification measures (eKYC). The number of Merp a y users who have completed identity verification (eKYC) has increased dramatically, helping Merp a y become the first payment service to resume new connections and bank charging with financial institutions that had suspended such connections from November 2020 onwards, such as Japan Post Bank, Gunma Bank, Tochigi Bank, and Nagano Bank.
we launched an identity verification process that uses Japan’s public Individual Number Card identification system (JPKI). Merp a y is the first payment service provider to implement identity verification using JPKI. Due to efforts to strengthen eKYC and promote identity verification, identity-verified accounts have 10 million as of March 31, 2022. Simple KYC using official identification (Individual Number Card) A first in the payment industry Individual Number Card Verification
the credit limit determined by their Merc a ri usage history • Allows users to set usage limit and confirm usage history, so they can manage use of the service themselves • Provides flexible deferred payment/fixed-amount payment options, allowing users to adjust repayment amount at any time Merp a y Smart Payments—A Credit Service Based on “Trust” *Deferred payment is not available to users under the age of 18. Users 18 or 19 years of age also have an upper usage limit of 50,000 yen and require the consent of their parent or guardian. Fixed-amount payment is not available to users under the age of 20. Total usage limit for deferred + fixed-amount payments is 300,000 yen.
a user will uphold their promise to repay based on their unique transaction data from Merc a ri. In this way, we can build trust, creating a new form of credit for the user. Notifies about completed payment Reviews receives sales proceeds Purchases/pays to Reviews Lister Buyer Sends
my skills. I didn’t have the money to pay for it upfront, but I knew that if I needed to, I could sell it for a good price on Merc a ri, so I bought it using Merp a y Smart Payments (fixed-amount payment) without having to worry. By the time I had to pay it off, I was able to play it in concerts and earn more money, making it easy to pay back what I owed. Comments from Merp a y Smart Payments (+ fixed-amount payment) users Male, 37 Male, 22 Female, 30 I’m in a band and want to try out a lot of different instruments! These days, it’s harder to get by using just cash. This makes budgeting easy and it’s really convenient. I want to buy things I need for trips and make lifelong memories with my friends! I want to avoid having a credit card, and I always use cash when I’m shopping. But this has become really inconvenient now that I leave the house so infrequently. Now I know that when I’m worried something on my wishlist or an essential item will only be available online, I can still pay for it within my means using fixed-amount payments. I don’t have to strain my wallet and it feels good to shop. My favorite thing is how easy it is to make a payment plan and understand how I’m using my money without spending tons like I would with a credit card. I want to pay for trips and buy the items I need for travel. I love that I can use Merp a y Smart Payments (fixed-amount payment) to buy things before the trip, then continue to pay for things while I’m traveling. I love not having to carry around cash.
Smart Money, a small-sum loan service that Merc a ri users can apply for within the Merc a ri app and that utilizes Merc a ri usage history to determine a user’s interest rate and borrowing limit • The service focuses on not only providing appropriate credit, but making that credit balance easy to repay, allowing users to repay using their Merc a ri points/sales balance and change their monthly repayment day, repayment amount, and other repayment plan details within the app Merp a y Smart Money—Small-sum Loan Based on Merc a ri Usage *Maximum borrowing limit is 200,000 yen. Interest rate and borrowing limit are determined through a screening process based on the user’s Merc a ri usage history. Not available to users less than 20 years of age or over 70 years of age.
than Ever Using Merc a ri makes Merp a y Smart Money even easier to use; the user’s Merc a ri sales history is used to predict future selling habits, with users receiving an interest rate according to that forecast 33
Credit Services Credit based on Merc a ri usage history 35 Flexible payment methods Visualizes usage status Merc a ri sales balance We also have a dedicated team working daily to improve quality of the service, and we’re working to incorporate external experts’ opinions regarding provision and administration of the service
a y balance on the peer- to-peer investment service Funds. The first fund was announced in November 2020 and the second in January 2021, with both selling out in less than one minute. By allowing users to sell unneeded items on Merc a ri and use the resulting sales proceeds for asset management on Funds, this initiative expands the user experience for both Merc a ri and Merp a y. Merc a ri Sustainability Fund on Funds
and everywhere We believe that every one of us holds untapped potential and that everything has value regardless of its form. At Mercoin, we are creating products that help people unleash their potential, empowering them to create and circulate value. Beyond goods. Beyond money. We envision a world where anyone can easily exchange cryptoassets, digital assets, and any other forms of value, utilizing cutting-edge technologies to break the boundaries of what is possible.
internal testing of Merc a ri X, a proof-of-concept model for a possible future Merc a ri using blockchain technology 2017.12 2018.11 2020.1 Announced Merc a ri X Announced Merc a ri X, tested internally from Sep 2017, at Merc a ri Tech Conf 2018 Established R4D Established a new research and development organization with the goal of implementation in society in collaboration with external companies and educational institutions 2019.9 Established the R4D Board Established a new Research and Development Advisory Board for R&D at Merc a ri Began value exchange engineering Began collaborative research into value exchange engineering with The University of Tokyo’s RIISE 2020.5 Acquired patents related to blockchain and wallet features Considering what the economy could look like with blockchain at its core In May 2020, published a discussion paper regarding cryptocurrency exchange businesses (CGTF) Merc a ri’s History of Investing in Technology
technology = Merc a ri’s blockchain technology Safe and secure transactions centered on Merc a ri (Items and money) Easy transactions with a new level of safety and security, where user participation takes a variety of forms (Items/money + intangible services/rights)
contactless payment service available Code payments available; released the coupon feature Reached 1 million registered users of Merp a y Electronic Money Released the Merp a y Smart Payments (formerly Merp a y Deferred Payments) feature Released online payments feature Reached 2 million registered users of Merp a y Electronic Money Reached 4 million Merp a y users Reached 5 million Merp a y users Business alliance with Shinkin Central Bank concluded; reached 6 million Merp a y users Origami Inc. joined the Merc a ri Group; Merc a ri, Merp a y, and NTT DOCOMO agreed on partnership Reached 7 million Merp a y users Fixed-amount payment and sending/receiving features released Began providing a shared QR code for d Payment and Merp a y Reached 8 million Merp a y users 2017/11 2019/2 2019/3 2019/4 2019/5 2019/6 2019/9 2019/10 2020/1 2020/2 2020/6 2020/7 2020/9 2020/10
Merp a y available for use on Funds Became the first service in the industry allowed to resume the bank connections that were suspended due to fraud cases (Resumed connections with Japan Post Bank in January) Reached 8.5 million Merp a y users Began providing a “virtual credit card” that can be used to pay for purchases on online stores with Merp a y Smart Payments Became the first service in the industry to support KYC using the IC chips in Individual Number Cards Reached 9.8 million Merp a y users Reached 10 million Merp a y users Launched small-sum loan service Merp a y Smart Money 2020/11 2020/12 2021/3 2021/4 2021/8